Local Events Matter for Short-Term rentals: A Case Study - The Wooden Boat Show in Mystic, CT
Property managers (PMs) and hosts in the U.S. are currently in that period where we are analyzing how Memorial Day went, how we are pacing July 4th, and even starting to make predictions on performance for Labor Day. And of course, let's not forget Juneteenth as it is now a Federal Holiday.
While these events are vital to track and manage, PMs cannot overlook the effect of local and regional events on their performance. As an example, we took a look at the WoodenBoat Show in Mystic, CT on June 24-26th, a very regional and local event, and how it impacts the PMs and hosts in that area.
First, we can see that these local events are just that, local. When we look at surrounding areas and cities, we don’t see the same demand that we see in Mystic on the 24th and 25th — it is a normal weekend in most markets and they are not affected by the Woodenboat show. Our takeaway here is that it is not enough to know that a local event is happening in your market, but you need to know if it is actually affecting demand for your listing. Knowing this will allow you to optimize your pricing strategy and earn more revenue.
Next, we need to find out how much this event is affecting the market and how best to respond. The good news if you are using Beyond, finding these things out is much easier as our platform automatically determines this for your listings. However, if you are pricing on your own, there is some manual work to do. A simple way is to look at the rates already achieved in the market.
In the chart below we can see the average daily rates for the WoodenBoat show when it is held in 2022 and the same weekend when it was NOT occurring in 2021. We can see that rates due to the event are up 28% and 49% on the Friday and Saturday respectively.
Finally, now that we know how much the market is raising the prices, we can check how this event will affect our listings. Taking a look at occupancy changes by bedroom size for Saturday, June 24th, we can see that the demand for 1-3 bedrooms compared to the weekend only increases a few percentage points. However, the homes with more bedrooms are seeing more demand from the WoodenBoat Show, with 6 bedrooms seeing a 26% increase in demand. Knowing which events affect which types of listings is very important to factor into your pricing strategy.
How do you factor local events into your pricing strategy? At Beyond, we are uniquely positioned to help you with your revenue management strategy with a demand-driven pricing tool and extensive market data. We can also forecast revenue and maximize your earnings with our local market experts.